Unum Group (NYSE:UNM) to Buyback $1.00 billion in Stock

Unum Group (NYSE:UNM) declared that its board has approved a stock repurchase plan on Thursday, December 4th, RTT News reports. The company plans to repurchase $1.00 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 8.2% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the company. Wolfe Research raised Unum Group to a “strong-buy” rating in a report on Tuesday, September 16th. JPMorgan Chase & Co. cut their target price on Unum Group from $94.00 to $92.00 and set a “neutral” rating on the stock in a research report on Tuesday, November 4th. Wells Fargo & Company lowered their price target on Unum Group from $100.00 to $98.00 and set an “overweight” rating for the company in a report on Wednesday, October 8th. Weiss Ratings reissued a “buy (b-)” rating on shares of Unum Group in a report on Monday, December 1st. Finally, Barclays boosted their price objective on shares of Unum Group from $92.00 to $95.00 and gave the stock an “overweight” rating in a research report on Wednesday, October 8th. Two investment analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $94.67.

Unum Group Stock Up 1.3%

UNM stock opened at $74.32 on Friday. The company has a market cap of $12.44 billion, a price-to-earnings ratio of 14.49, a price-to-earnings-growth ratio of 1.45 and a beta of 0.20. The company has a fifty day moving average price of $76.19 and a 200 day moving average price of $76.35. The company has a debt-to-equity ratio of 0.32, a current ratio of 0.36 and a quick ratio of 0.36. Unum Group has a 12 month low of $66.81 and a 12 month high of $84.48.

Unum Group (NYSE:UNM) last posted its quarterly earnings data on Monday, November 3rd. The financial services provider reported $2.09 EPS for the quarter, missing analysts’ consensus estimates of $2.15 by ($0.06). Unum Group had a net margin of 6.99% and a return on equity of 13.09%. The business had revenue of $3.25 billion during the quarter, compared to analyst estimates of $3.31 billion. During the same quarter in the prior year, the firm posted $2.13 earnings per share. The company’s revenue for the quarter was up 5.0% compared to the same quarter last year. Sell-side analysts expect that Unum Group will post 9.14 earnings per share for the current year.

Unum Group Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, November 14th. Shareholders of record on Friday, October 24th were paid a dividend of $0.46 per share. The ex-dividend date of this dividend was Friday, October 24th. This represents a $1.84 annualized dividend and a yield of 2.5%. Unum Group’s dividend payout ratio is currently 35.87%.

Insider Activity at Unum Group

In other Unum Group news, EVP Christopher W. Pyne sold 4,000 shares of the stock in a transaction that occurred on Friday, November 7th. The stock was sold at an average price of $78.04, for a total transaction of $312,160.00. Following the completion of the sale, the executive vice president directly owned 51,372 shares of the company’s stock, valued at approximately $4,009,070.88. This trade represents a 7.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Steven Andrew Zabel sold 7,500 shares of Unum Group stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $76.38, for a total value of $572,850.00. Following the completion of the transaction, the executive vice president owned 113,807 shares in the company, valued at $8,692,578.66. This trade represents a 6.18% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.92% of the stock is owned by corporate insiders.

Unum Group Company Profile

Unum Group, together with its subsidiaries, provides financial protection benefit solutions primarily in the United States, the United Kingdom, Poland, and internationally. It operates through Unum US, Unum International, Colonial Life, and Closed Block segment. The company offers group long-term and short-term disability, group life, and accidental death and dismemberment products; supplemental and voluntary products, such as individual disability, voluntary benefits, and dental and vision products; and accident, sickness, disability, life, and cancer and critical illness products.